Medco cancels rights issue plan

By Febry Silaban

IDX-listed integrated energy company PT Medco Energi Internasional Tbk has canceled an earlier proposal to raise funds via rights issue in the near future.

Medco initially planned to raise up to Rp 4.65 trillion via rights issue, of which about 70 percent of the proceeds would be used to repay debts, and the remaining to finance acquisition.

Medco President Director Hilmi Panigoro said that the proposed rights issue was supposed to be discussed at an extraordinary shareholders meeting on Wednesday, but the meeting did not meet the required quorum, so there was no agreement on the proposed funding raising.

He said that if Medco feels the need to raise funds via rights issue, the company would call for another shareholders meeting to get approval.

Editing by Reiner Simanjuntak